Introducing International Political Economy


Added on  2023-04-23

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Introducing international political economy
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Introducing International Political Economy_1

1Inroduction of intenational political economy
What is the principle cause of the current crisis in the World Trade
WTO stands for World Trade Organization. It is a global organization which deals with
the manner in which trading activities should be carried out between nations. The main aim of
this is organization is to provide benefits to the producers of services, importers and exporters to
manage their business. (Altbach, 2015). WTO establishes the international rules of trade with
nations. Its general duties include overseeing global trade rules between nations, fuelling the
process of globalization and its primary concern is to provide open lines of communication for
trade between its members. The current financial crises prevailing around the world is of prime
concern for the WTO. The world encircles itself around WTO. Without it, the base of the trade
system would have fallen apart. Factors like globalization, international trade, international
finance, finance crises, microeconomics, macroeconomics, development economics, global
markets, political risks, all stand on the base structure of WTO (Dutt et al., 2013).
Crisis being faced by the WTO
At present the World Trade Organization is facing a great threat, the greatest possible
threat in its twenty three years of existence. As claimed by America’s President, Donald Trump
WTO cannot deal with the issues created by China’s sudden economic growth and China is to
some extent challenging the rules and regulations that govern the World Trade Organization.
Probably, this can turn out to be one of the biggest problems that the World Trade Organization
is facing today. China since the last decade has been a country which is fast progressing be it
concerning population, technologies, and literacy or be it trade (Lu & Yu, 2015). It is the success
of the country China that is detrimentally affecting the World Trade Organization. The World
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Trade Organization is in essence, a negotiating forum. It’s the place that governments of nation
go to in order to solve their trade problems and work for the betterment of the world by settling
their disputes. WTO’s current work has included negotiations during the Uruguay Round, and
then GATT (General Agreement on Tariffs and Trade) (Cooper, 2014). Moreover, in recent
times it has hosted the negotiations of “Doha Development Agenda”.
Implementation of the rules being proposed by the WTO
In total the WTO is a set of rules. The system’s overriding agenda has been to let the
trade system flow as smoothly as possible so long as it does not suffer from any adverse impact.
The agreements that violate WTO norms are sorted out with interpretation (Constantinescu et al.,
2015). The crises of the organization arises with the successive problems in the fields of a huge
range of activities such as sanitation, food, textiles, banking, clothing, government purchases,
product safety, and telecommunications among others. These form the foundation of the
multilateral trade system. WTO members are compelled to adhere to commitments made by
them if they intend on being allowed to engage in the continued exchange of goods as well as
services on a global level (Wrobel, 2013). Nations can make changes to unalterable policies only
by negotiating with other partner nations. Bindings can be changed by a country only when it
negotiates with its partner nations. Liberal trade policies provide the unrestricted flow of goods
and services which automatically increases competition, motivates innovates and breeds success.
Despite the many advantages and disadvantages of liberalization as the critical feature of modern
society, the current crisis has led to the nations all around the world to come forward and
implement protectionist measures, strengthening in turn, their regional ties more and more. The
noticeable effects of the crisis in the World Trade Organization were visible only when there
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